Investment boost as re-refinery planned for Wirral

CLEAN-tech industrial group Hydrodec is set to invest in opening the country’s first purpose-built oil re-refinery on the Wirral.
 
The London-based company which has operations in the US and Australia, has signed a deal with Peel Ports Group for a long term lease on land at Port Wirral in Eastham.

The AIM-listed company has devised a re-refinery process which transforms used oil which would otherwise be treated as a waste product into a new product which can be re-used as base oil.

The regenerated base oil is used to create lubricants which are used in a wide range of applications but particularly in the automotive and industrial sectors.

Subject to planning permission under the Nationally Significant Infrastructure Planning regime, the nine acre Eastham site at Queen Elizabeth II Docks at the mouth of the Manchester Ship Canal forms the first phase of an approximate £40m development.  

The new re-refinery is set to create up to 40 jobs and apprenticeship opportunities, and will support further jobs during the construction phases of the facility.

Hydrodec said it had chosen the site in order to take advantage of the excellent transport connections by road, rail and water along the River Mersey and Manchester Ship Canal.

As part of plans to develop the re-refinery, Peel Ports will invest more than £400,000 to relocate and provided an upgraded pitch, changing and club facilities for community football team MSC Eastham.

Mark Whitworth, chief executive of Peel Ports Group said: “The deal with Hydrodec has come as a result of the significant investments Peel Ports is making to position North West as a prime location for exporters and importers.  

“Peel Ports’ investments in transport infrastructure, such as Liverpool2 and the Manchester Ship Canal, is already accelerating the growth of businesses in the north.
“Hydrodec’s £40m oil re-refinery will have a positive impact on the local economy and create new jobs directly and in the supply chain.”

Ian Smale, chief executive of Hydrodec added: “We are focused on developing the UK’s first purpose built used lubricant oil-refinery producing the highest quality base oils and are currently fully engaged in the planning, permitting and financing process for the project.

 “We considered various potential sites in the UK for the new re-refinery and selected the Eastham site for a number of reasons. The site is located in an established petrochemicals region and is allocated for employment use, provides good transport links by river and by road, while the availability of adjacent storage facilities means the size of the new plant can be kept to a minimum
 
“This agreement lease is an important milestone in the development of our European hub to re-refine hydrocarbons.”

Construction is expected to begin in 2016 and will take approximately 18 months to complete.

In 2013 Hydrodec acquired Knowsley-based OSS Group, which is  the UK’s largest  collector, consolidator and processor of used lubricant  oil and seller of processed fuel oil, with a national network of oil storage and transfer stations.